Is the American Express Pay Over Time option bad?

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
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kcarter609
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Is the American Express Pay Over Time option bad?

Postby kcarter609 » Sun Sep 02, 2012 2:24 pm

Is it bad to use AMEX pay over time on a charge card? (Gold -- not the PRG, just regular). I don't do it anymore, but in the past I carried the balance over like 2-3 months a couple times. I'm kinda wondering if they see that as a bad thing... but then again, they offer it...

By the way, my payments were always way more than the minimums and always early.

Thoughts?

Active Cards:
Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
Chase Sapphire Preferred ($10k Limit - 2/2013)
Chase Ink Plus ($7k Limit - 2/2013)
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AMEX Zync (No Pre-set Limit - 1/2010)
AMEX Blue Cash Everyday ($20k Limit - 1/2013 - Backdate to 1/2010)


DavidNY
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Postby DavidNY » Sun Sep 02, 2012 5:39 pm

Any bank loves to charge interest. Not a bad thing from the bank's perspective unless you're doing it excessively.

jlam572
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Postby jlam572 » Sun Sep 02, 2012 8:13 pm

DavidNY is right, but I have also heard of amex lowering your spending limit if you start to do that often. If you read some reviews on the amex site...a lot of people have been dropped down to like a 1k limit because of using that feature.
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kcarter609
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Postby kcarter609 » Sun Sep 02, 2012 8:22 pm

According to their check your spending thing, I can still get approved for $8k or so, so I guess it's not that bad. I know people who use it excessively who have balances over 20k and still do it. I don't plan to use it ever again though, so I should be ok I think.

Active Cards:
Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
Chase Sapphire Preferred ($10k Limit - 2/2013)
Chase Ink Plus ($7k Limit - 2/2013)
Discover IT ($9.5k Limit - 10/2012)
AMEX Zync (No Pre-set Limit - 1/2010)
AMEX Blue Cash Everyday ($20k Limit - 1/2013 - Backdate to 1/2010)

jlam572
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Postby jlam572 » Mon Sep 03, 2012 2:39 am

kcarter609 wrote:According to their check your spending thing, I can still get approved for $8k or so, so I guess it's not that bad. I know people who use it excessively who have balances over 20k and still do it. I don't plan to use it ever again though, so I should be ok I think.


Ok, I was reading the reviews on amex's site the other day and there was a guy who was never late a payment, and was a cardholder for 20 years...used the pay over time feature a few times and his limit dropped from 50k to 1k. Check the one star reviews, some of them are amusing...my favorites are the "whats the point of this card if i have to pay it off every month...this card is teh stoopid"
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Capital One Visa Platinum

Citi Diamond Preferred MC

kcarter609
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Postby kcarter609 » Mon Sep 03, 2012 7:47 am

jlam572 wrote:Ok, I was reading the reviews on amex's site the other day and there was a guy who was never late a payment, and was a cardholder for 20 years...used the pay over time feature a few times and his limit dropped from 50k to 1k. Check the one star reviews, some of them are amusing...my favorites are the "whats the point of this card if i have to pay it off every month...this card is teh stoopid"


Haha that's awesome. I just hope it doesn't hurt me when I apply for BCP.

Active Cards:
Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
Chase Sapphire Preferred ($10k Limit - 2/2013)
Chase Ink Plus ($7k Limit - 2/2013)
Discover IT ($9.5k Limit - 10/2012)
AMEX Zync (No Pre-set Limit - 1/2010)
AMEX Blue Cash Everyday ($20k Limit - 1/2013 - Backdate to 1/2010)

FutureBillionaire
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Postby FutureBillionaire » Tue Sep 04, 2012 2:14 pm

It will cause your account to be reported as a revolving account. I like not having this balance show up as my used credit.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

hematino
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Postby hematino » Tue Sep 04, 2012 4:34 pm

FB, do you know if it makes the change in how it reports by just signing up for the option to use pay over time, or by actually using it at least once?
Now she's eyeless.
The snakes she held once
Eat up her hands.

FutureBillionaire
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Postby FutureBillionaire » Tue Sep 04, 2012 4:43 pm

Mine changed just by signing up. I never have used it. I don't believe in paying interest. I signed up to get the bonus points, but then backed out when I realized it would impact my reporting.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

hematino
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Postby hematino » Tue Sep 04, 2012 6:16 pm

OK thanks. My Green is enrolled but I've never used it, going to call the number on the card to have the option removed.
Now she's eyeless.
The snakes she held once
Eat up her hands.



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